Demand tends to be more price inelastic at _____ prices and more price elastic at _____ prices.
A) lower; lower
B) lower; higher
C) higher; higher
D) higher; lower

Question

Quizplus · Accepted Answer

Demand tends to be more price inelastic at lower prices because consumers may not reduce their consumption significantly if the price is already low. At higher prices, demand becomes more price elastic as consumers are more sensitive to price changes and may reduce their consumption or switch to alternatives.

Demand Tends to Be More Price Inelastic at _____ Prices